SEC Withdraws Fraud Case, Settles Lawsuit with Investor Michael Manis
NEW YORK, Aug. 13, 2014 /PRNewswire/ -- The Securities and Exchange Commission dropped its fraud case against stock investor Michael Manis, dismissing its most serious allegations while settling its remaining claim for a fraction of its supposed value. The SEC filed the case in 2012, originally accusing Manis and his co-investors of committing securities fraud through transactions in microcap stocks that yielded approximately $17 million in proceeds. Manis will pay approximately five percent of that amount, along with a "penalty" payment of $25,000, under the terms of the settlement.
In its revised complaint, the SEC alleged that Manis and others ran afoul of federal registration requirements in their sales of microcap stocks. Manis and his co-investors sold unregistered shares of stock after obtaining attorney opinion letters invoking various regulatory exemptions from the federal registration requirements. Under the terms of the settlement, Manis was required to "neither admit nor deny" the SEC's claim that the exemptions did not apply.
The case was pending before Judge Shira A. Scheindlin of the United States District Court for the Southern District of New York, under case number 12-Civ-9339. Manis was represented by Edward J.M. Little and David B. Shanies of Hughes Hubbard & Reed LLP.
Contact: Edward J.M. Little, (212) 837-6400
SOURCE Hughes Hubbard & Reed LLP
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